Svenska UMTS-nät AB, jointly owned by TeliaSonera and Tele2, has agreed with Orange Sverige to purchase the fourth 3G license in Sweden

December 29, 2003

1 Min Read

HELSINKI -- The company Svenska UMTS-nät AB, jointly owned by TeliaSonera and Tele2, has agreed with Orange Sverige AB to purchase the fourth 3G license in Sweden.

"We believe the mobile Internet - email and web surfing from mobile phones - is going to go over big with our customers. And when it does, we will need the extra capacity that this license gives us", says Marie Ehrling, CEO of TeliaSonera Sweden.

TeliaSonera and Tele2 already share one license through the jointly-owned Svenska UMTS-nät AB. The new license will not change the modalities of their cooperation.

Orange Sverige AB today applied to PTS, the National Post and Telecom Agency, for permission to assign a license under the new Electronic Communications Act to Svenska UMTS-nät AB. At the same time TeliaSonera and Tele2 notified the Swedish Competition Authority of their intentions.

In order to comply with the terms of the new license, Svenska UMTS-nät will expand its network in Sweden's metropolitan areas. The costs for the license and the extra build-out will be covered by the existing loan facility. The cost of the extra build-out will be less than the efficiency gains that are realized since the investment in extra frequencies can replace a more concentrated infrastructure.

Access to radio spectrum will be essential to the cost-effective design of attractive plans to customers when mobile Internet use over the 3G network takes off.

The final closing of the deal is contingent on the approval of the transaction by the authorities and the approval of the Boards of all involved companies.

Tele2 AB

TeliaSonera AB

Orange Sverige AB

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